Why Enterprise Products Partners Stock Jumped on Monday
Shares of Enterprise Products Partners (NYSE: EPD) rallied on Monday, closing the day up 3.8%. The large-cap stock doesn't always move so much in one day, so today's rally didn't escape the attention of investors in oil and gas stocks.
Enterprise Products Partners is one of the largest midstream oil and gas stocks in the U.S. with nearly 50,000 miles of pipelines transporting natural gas, natural gas liquids, crude oil, and petrochemicals and other refined products. Enterprise Products Partners stores, processes, and transports fuels, and is also the world's largest exporter of liquefied petroleum gas (LPG).
With prices of oil and gas rising, Enterprise Products Partners generated nearly $2 billion in cash from operations during its second quarter, up 69% year over year. It generated $1.6 billion in distributable cash flow that comfortably covered its distribution (or dividend) by 1.6 times. Importantly, Enterprise Products Partners has increased dividends for 22 consecutive years now.
Source Fool.com
